Additional Information: 1. The investment includes $4,000 invested in treasury bills, which will mature in July 1, 2021. The remaining investments carries a maturity period more than one year, ie., will mature in 2022. 2. The land account consists of $30,000 for the cost of the land where the office buildings are located. The remaining balance represent the cost of the land held for sale. 3. $9,500 of cash balance will be used as an investment in marketable securities that is going to take place next year. The remaining represent commercial papers due in January 2022. 4. The company entered into a contract with the real estate company. Accordingly, the company has paid advance rent equal to two years rent. Prepaid rent reported in the balance sheet is related to advance rent paid for 2021 and 2022. 5. Out of $15,000 balance of Bond payable, $7,000 will be payable in 2015. Required: Prepare classified balance sheet as per 31* December 2020.
Additional Information: 1. The investment includes $4,000 invested in treasury bills, which will mature in July 1, 2021. The remaining investments carries a maturity period more than one year, ie., will mature in 2022. 2. The land account consists of $30,000 for the cost of the land where the office buildings are located. The remaining balance represent the cost of the land held for sale. 3. $9,500 of cash balance will be used as an investment in marketable securities that is going to take place next year. The remaining represent commercial papers due in January 2022. 4. The company entered into a contract with the real estate company. Accordingly, the company has paid advance rent equal to two years rent. Prepaid rent reported in the balance sheet is related to advance rent paid for 2021 and 2022. 5. Out of $15,000 balance of Bond payable, $7,000 will be payable in 2015. Required: Prepare classified balance sheet as per 31* December 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Lewiston Company reports the following trial balance on December 31, 2020:
Account title
Debit
Credit
Cash
$30,000
Investments
55,500
Account Receivable
$12,000
Allowance for uncollectable
$3,000
Prepaid rent
$8,000
$10,000
$40,000
$29,500
Inventories
Land
Patent
Account Payable
$2,000
$6,000
Unearned Revenue
Bond Payable
$15,000
Common Stock
$72,000
Retained Earning
$37,000
Total
$135,000
$135,000
Page 3 of 6](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bcb22fa-f91f-4e0d-8193-1cb3b9ae0f86%2F80455722-8278-4be8-bd4e-ef396f869df3%2Fm9p9kfg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Lewiston Company reports the following trial balance on December 31, 2020:
Account title
Debit
Credit
Cash
$30,000
Investments
55,500
Account Receivable
$12,000
Allowance for uncollectable
$3,000
Prepaid rent
$8,000
$10,000
$40,000
$29,500
Inventories
Land
Patent
Account Payable
$2,000
$6,000
Unearned Revenue
Bond Payable
$15,000
Common Stock
$72,000
Retained Earning
$37,000
Total
$135,000
$135,000
Page 3 of 6
![Additional Information:
1. The investment includes $4,000 invested in treasury bills, which will mature in
July 1, 2021. The remaining investments carries a maturity period more than
one year, ie., will mature in 2022.
2. The land account consists of $30,000 for the cost of the land where the office
buildings are located. The remaining balance represent the cost of the land held
for sale.
3. $9,500 of cash balance will be used as an investment in marketable securities
that is going to take place next year. The remaining represent commercial
papers due in January 2022.
4. The company entered into a contract with the real estate company. Accordingly,
the company has paid advance rent equal to two years rent. Prepaid rent reported
in the balance sheet is related to advance rent paid for 2021 and 2022.
5. Out of $15,000 balance of Bond payable, $7,000 will be payable in 2015.
Required:
Prepare classified balance sheet as per 31t December 2020.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bcb22fa-f91f-4e0d-8193-1cb3b9ae0f86%2F80455722-8278-4be8-bd4e-ef396f869df3%2Fekny6eo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Additional Information:
1. The investment includes $4,000 invested in treasury bills, which will mature in
July 1, 2021. The remaining investments carries a maturity period more than
one year, ie., will mature in 2022.
2. The land account consists of $30,000 for the cost of the land where the office
buildings are located. The remaining balance represent the cost of the land held
for sale.
3. $9,500 of cash balance will be used as an investment in marketable securities
that is going to take place next year. The remaining represent commercial
papers due in January 2022.
4. The company entered into a contract with the real estate company. Accordingly,
the company has paid advance rent equal to two years rent. Prepaid rent reported
in the balance sheet is related to advance rent paid for 2021 and 2022.
5. Out of $15,000 balance of Bond payable, $7,000 will be payable in 2015.
Required:
Prepare classified balance sheet as per 31t December 2020.
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